Tax on the donation of money for the purchase of housing in France

Question

Tax on the donation of money for the purchase of housing in France

Sofia L. asks:

Hello,
I want to transfer my daughter money to buy a home in France. She is an Israeli citizen and tax resident in France. I heard that there is a tax on donating money when buying a home in France. What amount is not taxed? How can this be properly formalized so that there are no complaints from the French tax authorities?
Many thanks.

05.04.2018

FRANCE. Consultation

Taxes, fees

Expert answers (1)

Zarfati Maria (Страна Плюс) · Answer 1 · 2018-04-05T23:18

Sophia, since her daughter is a tax resident of France, she is taxed to donate money to buy housing, you are up to date. The amount that will not be taxed is 100,000 euros. This amount can be donated to the child by each parent once every 15 years. If the value of the property exceeds, for example, the threshold of 200 000 Euros, you can formalize the purchase by dividing it into shares with the participation of the parents. If properly designed, you can circumvent the payment of taxes. All you need to consider having a particular real estate object "on hand" with your real estate agent. He should optimize all tax issues.